In a report that is eye-popping, Mahindra and Mahindra Farm Equipment Sector claims to have sold 24,341 tractor units in the month of May. Considering that the lockdown is as much in effect today as it was then, these are surprising numbers. However, the company had reported sales of more than 4,000 tractors in the month of April as well. The 24,000+ tractor unit sales comprise both domestic as well as export numbers. Individually, in the domestic market, 24,017 tractors were sold with the rest of them being exports. This has also triggered the growth of 2 per cent YoY. This is also a piece of good news amid these gloomy times. Anand Mahindra, the chairman of the Mahindra and Mahindra group said that “Economic recovery will be led by our farmers…”Back to basics’…”Mahindra claims to be the world’s largest tractor maker and has a high number of exports in this field compared to the other manufacturers.
The surge in tractor sales can be traced to the fact that the IMD is giving out a normal monsoon prediction. Several parts of the country have been experiencing light showers in the last few days. Hemant Sikka, president – farm equipment sector at Mahindra and Mahindra said that good predictions for Kharif crops has buoyed the demand. He also added that the timely relaxation provided by the government has helped the demand for tractors and thereby helping farmers to start farming keeping the monsoon in mind.
Anand Mahindra’s statement rings a bell. Agriculture is billed to bring back the economic growth of the country amid this devastating pandemic. The overall sense of growth in agriculture has helped demand for the tractors. Agriculture has long being the backbone of the Indian economy. Moreover, this comes at a time when car sales are at an all-time low. For example, Mahindra managed to sell just 9076 vehicles including commercial vehicles, in May 2020. This is down from the 43,000+ units sold last year in the same month.
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